Fixed exchange rates:
A. do not restrict exchange rate movements.
B. are difficult to maintain without sufficient official reserves.
C. give governments great flexibility in their use of monetary policy.
D. limit foreign exchange market intervention.
Answer: B
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The body that is responsible for dating the beginning and ending dates for a recession is
A) the Congress. B) the National Bureau of Economic Research. C) the Bureau of Economic Analysis. D) the Fed.
If savings does not depend upon the interest rate, then
a. the IS curve is vertical. b. the IS curve is horizontal. c. the LM curve is horizontal. d. the IS curve is still downward sloping. e. none of the above.
Part of the deadweight loss from taxing labor earnings is that people
a. will work more. b. will be reluctant to hire accountants to file their tax returns. c. with low tax liabilities will universally be worse off than under some other tax policy. d. will work less.
John has just tried on the most comfortable pair of pants that he has ever known. The pants are a(n)
A) experience good. B) credence good. C) logo good. D) information good.